Two New Mexico residents have filed a class action lawsuit accusing Drake, streamer Adin Ross, and Sweepstakes Limited—the parent company behind the online gambling platform Stake—of deceptive business practices. The suit comes just days after a similar case was filed in Missouri.
According to court documents, plaintiffs Nathaniel Torres and Rory Michie claim they lost money gambling on Stake.us over the past year. The site, operated by Sweepstakes Limited, is described in the filing as a “virtual clone” of Stake.com. The lawsuit argues that although Stake.us promotes itself as a “social casino,” it actually violates New Mexico’s gaming and consumer protection laws.
Online gambling of any kind is illegal in New Mexico.
The complaint echoes the Missouri filing, accusing Stake of using a deceptive model to bypass gambling laws.
“To hide the true nature of its online gambling operation, Stake asserts that the only chips it sells to consumers are tokens called ‘Gold Coins,’ which can only be used for ‘casual’ gameplay on the Stake.us platform, have no real-world value, and can never be cashed out,” the suit reads. “However, Stake bundles every purchase of Gold Coins with a second type of token called ‘Stake Cash’ as a supposedly free bonus. Unlike Gold Coins, Stake Cash can be wagered on casino games and cashed out for real money at a fixed 1:1 ratio to the U.S. Dollar—exposing Stake Cash as a clear vehicle for real-money gambling.”
Like the Missouri case, the New Mexico suit accuses Stake of using “free play” marketing tactics that exploit younger audiences and individuals struggling with gambling addiction.
Drake and Ross are also accused of promoting both Stake.com and Stake.us through livestreams “under deeply fraudulent pretenses.” The complaint claims the platform provides them with “house money” to gamble with, which is never disclosed to the public.
In response to the Missouri lawsuit, a spokesperson for Stake denied any wrongdoing and said the company plans to “vigorously defend this and all such claims.” Ross also dismissed the allegations, calling them “fucking bullshit.”
Torres and Michie are seeking to recover their gambling losses and compensation for all New Mexico residents allegedly affected.
